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Allocating procurement to capacitated suppliers with concave quantity discounts |
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| Authors: | Gerard J Burke H Edwin Romeijn |
| Institution: | a Department of Finance and Quantitative Analysis, Georgia Southern University, Statesboro, GA 30460, USA b Department of Industrial and Systems Engineering, University of Florida, Gainesville, FL 32611, USA c Department of Information Systems and Operations Management, University of Florida, Gainesville, FL 32611, USA |
| Abstract: | We consider a procurement problem where suppliers offer concave quantity discounts. The resulting continuous knapsack problem involves the minimization of a sum of separable concave functions. We identify polynomially solvable special cases of this NP-hard problem, and provide a fully polynomial-time approximation scheme for the general problem. |
| Keywords: | Knapsack problem Quantity discounts Nonlinear programming Approximation algorithms |
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